Politics
Trump prepares to widen use of tax-exempt red diesel to cut fuel costs
October 5, 2026 at 10:59 PM · Updated 10d ago
6 reports · 5 in Arabic, 1 in English · over 11 hours
Trump's administration is preparing to ease restrictions on tax-exempt red diesel to lower fuel costs for farmers and truckers before the November midterms.
- The administration plans to expand use of red diesel — normally reserved for off-road equipment — possibly to road vehicles, people familiar with the plan told Bloomberg.
- US average retail diesel stood at $6.32 a gallon on Sunday, about 68 percent above its level on February 28, when the US-Israeli war on Iran began.
- The American Farm Bureau Federation has demanded a temporary suspension of the federal diesel tax for agricultural transport and an exemption for emergency red-diesel road use.
- G7 leaders agreed Friday to release 100 million barrels from emergency stocks, and Trump said he will not restrict US fuel exports.
- Trump signed an executive order Monday waiving restrictions on red diesel for highway use and deferring federal excise taxes, announced in Nebraska.
- Analysts cautioned the move will not resolve the global refinery shortage caused by the Iran war and attacks on Russian refineries.
- Trump's executive order lets all Americans buy tax-exempt diesel for any purpose and defers the excise tax until year-end, without interest or penalties.





